Solid Q2 Growth Data Offsets Worries Amid Market Turmoil

  • Treasury yields pare earlier declines after solid U.S. GDP report
  • Yields on 2-year, 10-year, and 30-year Treasuries dropped on Wednesday
  • U.S. GDP expanded at a 2.8% annual pace in Q2, twice as fast as Q1
  • Initial jobless claims fell by 10,000 to 235,000 for the week ending July 20
  • Treasury’s $44 billion auction of 7-year notes set for Thursday afternoon

Treasury yields recovered from earlier declines following the release of a strong U.S. GDP report, which showed the economy maintaining its strength despite recent market turbulence and disappointing earnings. The yield on the 2-year Treasury fell by less than 1 basis point to 4.409%, the 10-year dropped 3.8 basis points to 4.247%, and the 30-year slipped 4.6 basis points to 4.502%. Initial jobless claims decreased by 10,000 to 235,000 for the week ending July 20, exceeding expectations of an 8,000 drop. The Treasury will auction $44 billion in 7-year notes later today.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Treasury yields, U.S. economic growth, and the impact of political uncertainty on the economy. It also includes relevant data from the U.S. GDP report and quotes an expert’s opinion on the topic.
Noise Level: 3
Noise Justification: The article provides relevant information about Treasury yields, economic growth data, and market reactions to them. It also includes insights from an expert on the potential impact of political uncertainty on future growth. However, it lacks in-depth analysis or new knowledge that the reader can apply.
Public Companies: S&P 500 (SPX), Nasdaq Composite (IXIC), The Wall Street Journal ()
Private Companies: Ebury
Key People: William Dudley (Former Federal Reserve official), Matthew Ryan (Head of market strategy at Ebury)

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Financial Relevance: Yes
Financial Markets Impacted: U.S. Treasury yields, S&P 500 index, Nasdaq Composite, U.S. GDP, jobless-benefit claims, and 7-year notes auction
Financial Rating Justification: The article discusses the impact of U.S. economic growth data on financial markets such as Treasury yields, stock market performance (S&P 500 and Nasdaq Composite), GDP, jobless-benefit claims, and an upcoming 7-year notes auction. It also mentions the influence of political uncertainty on consumer spending and business investment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.marketwatch.com